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HomeMy WebLinkAbout09-11-13 Tentative Budget Public HearingOCOEE CITY COMMISSION TENTATIVE BUDGET PUBLIC HEARING Ocoee Commission Chambers September 11, 2013 MINUTES 6:00 P.M. I. CALL TO O RDER - Mayor Vandergrift A. Roll Call and Determination of Quorum I Mayor Vandergrift called the Tentative Budget Public Hearing to order at 6:00 p.m. in the Commission Chambers of City Hall. Commissioner Keller gave the invocation and special acknowledgment of the 9 -11 anniversary, followed by the Pledge of Allegiance to the Flag, led by Commissioner Johnson. City Cleric Eikenberry called roll and declared a quorum present. Roll Call: Commissioner Grogan, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson, and Commissioner Keller. Also Present: City Attorney Cookson, City Manager Frank, City Clerk Eikenberry, Finance Director Horton, Finance Manager Brosonski, Chief Accountant Briggs B. Mayor's Announcement This is a public hearing on the tentative budget and proposed millage rate for the City of Ocoee. Notice of this hearing was contained in the Notice of Proposed Property Taxes mailed by the Property Appraiser. The City Commission, by majority vote, has previously set a proposed millage rate at 5.9037 mills. Due to a decline in property values the rolled back rate of 5.9037 is higher than the current year millage rate of 5.8460 This proposed millage rate for FY 2013/14 represents a 0% increase [no increase]over the rolled back rate. II. PUBLI HEARING A. Briefing by City Attorney to discuss the maximum millage rate which may be levied and the rates required to exceed such millage. the preliminary millage rate set by the City Commission and contained in the TRIM Notices is 5.9037 mills. The maximum millage rate which may be levied by the City by regular majority vote for the 2013 -2014 fiscal year is 7.8291 mills, such maximum millage rate having been determined pursuant to Section 200.185(3)(a), Florida Statutes. The establishment of a millage rate between 7.8292 mills and 8.6120 mills requires a two - thirds vote (super majority) of the membership of the City Commission (or 4 votes). The establishment of a millage rate between 8.6121 mills and 10.000 mills requires a unanimous vote of the City Commission. Additionally, any millage rate adopted above the preliminary millage rate of 5.9037 would require notice by first class mail to each taxpayer. The tentative millage rate adopted at this hearing will become the maximum millage rate which may be adopted by the City Commission at the public hearing on the final millage rate. A unanimous vote or a two - thirds vote may be required to adopt the tentative millage rate as the final millage rate. At the final public hearing, the City Commission may adopt a millage rate which is less than the tentative millage rate. Ocoee City Commission Regular Meeting September 11, 2013 B. Briefing by Finance Director: review of additions /deletions to the budget since August 1, 2013 distribution, the percentage increase in millage over the rolled -back rate necessary to fund the budget and the specific purpose for which ad valorem tax revenues are being increased. Finance Director Horton advised the proposed operating budgets for the city of Ocoee for FY 2014 total $56,663,190. The proposed General Fund budget is now $35,348,910. Ad valorem taxes are being assessed to provide fimding for the operational expenses, capital items and salaries necessary to provide municipal services to the citizens and businesses of Ocoee. The City Manager presented the commission with a budget balanced at 5.8460 mils which is less than the rolled back rate. That budget has been changed to reflect actions taken during the budget workshops and the special meeting held to discuss fire protection fees. The three changes are: • Reduced revenues and expenditures by $25,000 in the general fund budget for a grant that was to help fund a downtown master plan. We have been advised we will not receive the grant. • Increased general fund contingency $26,000 for correction of the prices for (4) radios in the police department • Increased general fund contingency by $632,180 to reflect revenues available at the 5.8460 millage after applying revenues to be generated from the fire protection fees to the fire department budget. The General fund contingency is now $708,180. The commission adopted a proposed tentative millage rate for FY2014 of 5.9037. This is the rolled -back millage rate. The rolled back rate will generate an additional $92,585 in revenue. Adoption of either of these rates requires a majority vote by the commission. Items that were discussed but no action taken or consensus reached during the workshops are itemized on the Wishlist for you to further consider. 1. Comments by Citizens. Betty Haas, 3326 Johio Shores Road, said that felt Commissioner Johnson mislead residents and had them believing that the Founder's Day event does not use any taxpayer money and that is not correct. She had listened to the audio recording; she summarized a question raised by a resident and read what she stated was a verbatim wording of Commissioner Johnson's response. She stated that she felt he was misleading and wrong. She stated that the budget shows a $75,000 line item budgeted for Founders' Day. She read the figures for the last three years of what the entertainment cost and how much was raised by sponsors or fundraisers. 2. Comments by Commissioners. Commissioner Johnson said that what he stated that evening was referring to the money raised for the musicians. He read the same numbers that showed that the money raised for the last three years covered the costs of the entertainment, with the exception of the first year that was $4000 short. He noted that she was requesting a hardship for her renters frorn the fire fee, even though her total for all seven Ocoee properties owned by her would be $210.00. He questioned if she lowered their rent due to their hardship. He advised that she is not a resident of the city; he is a Page 2 of 8 Ocoee City Commission Regular Meeting September 11, 2013 resident who loves the city and works hard for the city and does not appreciate her comments that he is not a straight talker. Commissioner Wilsen and Commissioner Keller spoke in favor of Founders' Day; they agreed that it is the most popular event in the city and residents look forward to it every year. Commissioner Keller also mentioned that residents were very upset when the city tried to save money by eliminating Christmas Lights. Ms. Haas suggested that items that are expenditures of the City in long range planning should be posted on the city's website or reviewed at a public meeting so they understand where the money is going. Commissioner Wilsen said that is a good suggestion because the residents don't generally see all of the paperwork that the commission gets. Commissioner Grogan said they will be having a strategic planning meeting for long range planning. He added that he appreciates the public input that reminds them they need to be more open with that information. James Kelly, resident and 22 year employee, said that Founders' Day is a great event that everyone looks forward to. He said his Union makes money on the Founders' Day event and gives that money to Homes for Heroes to help build homes for wounded military men and women. He said that the event has grown from a small event to the huge success it is today. 3. Motions by Commissioners for amendments to the proposed tentative budget. Commissioner Grogan began to make a motion. City Attorney Cookson stated that motion would be premature, what we are hearing right now is only motions to amend the tentative budget. Commissioner Keller stated he would like to make a motion to remove $654,914 from the budget. Finance Director Horton corrected the figure and stated we only billed at 95 %, so the amount is $632,180. IIe stated he would like to remove it from the budget to reduce the millage rate; then we can pick other projects and add corresponding money back into the budget. He felt this would show the citizens that we are not double billing them. MOTION TO AMEND TENTATIVE BUDGET: Commissioner Keller made a motion to remove $632,180 from the budget. Commissioner Wilsen stated she would like to open that up for a discussion. She did not agree with taking the money out and them putting it back in. There was discussion regarding how various scenarios will affect the millage rate. Commissioner Grogan said he also does not agree with doing it in that way. Mayor Vandergrift mentioned we need to have someone look for grants. He advised Deltona got a grant for $10,000 for an emergency radio station; he would like to do something similar. He advised this would give us communication with our own residents during an emergency. He also stated he would like to set up a program to add rocking chairs to the lake front side of city hall. Discussion ensued regarding that issue already being voted on. Mayor Vandergrift also mentioned a skateboard park, and there was a brief discussion on that. He confirmed that we had finding in the budget for Christmas lights. Motion made by Commissioner Keller died for lack of second Commissioner Grogan said lie thinks everyone on the commission will agree to the revenue items on the Wish List: Item #1 Additional Red Light Camera's (3 new cameras plus staffing) Page 3 of 8 Ocoee City Commission Regular Meeting September 11, 2013 $67,000 revenue, and Item #19 Increase Plan Review Feeds $30,000 revenue. He added that the only expense item he feels is a necessity on the wish list is Item #14 SR 50 (FDOT) project — upgrade traffic signals; $447,850 cost. Engineer Wheeler stated this is the difference between strain poles and mast arms (6 signals). Mayor Vandergrift confirmed that the money for the sewer changes will come out of the utility fund. Commissioner Wilsen calculated that these three items would result in reducing the millage rate by $184,330 which will be below the roll back. We want to reduce the millage rate somewhat to help level out the cost of the fire fee. Commissioner Feller said it will actually be further below the roll back if you consider the two revenue items that Commissioner Grogan wants to add in. That would add an additional $97,000 in revenue for a total of $281,330 dollars below the roll back rate. Mayor Vandergrift asked about the sprinklers, lighting, and landscaping in the medians to which Mr. Wheeler explained that FDOT has a grant program where they give up to 1.5% of the construction cost for landscaping after the project is done. He stated the sleeve section under the road can be put in during the construction. He added that streetlights are currently proposed as part of the project along the side of the road. There was discussion regarding where we are with the millage rate vs. roll back rate. MOTION TO AMEND TENTATIVE BUDGET: Commissioner Grogan, seconded by Commissioner Keller moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes proposed in the Budget Workshops, to include the additional revenue of $67,000 from the installation of 3 additional red light cameras. Motion carried 5 -0. MOTION TO AMEND TENTATIVE BUDGET: Commissioner Grogan, seconded by Commissioner Wilsen moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes proposed in the Budget Workshops, to include the additional revenue of $30,000 for increasing Plan Review Fees. Motion carried 5 -0. MOTION TO AMEND TENTATIVE BUDGET: Commissioner Grogan, seconded by Commissioner Wilsen moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes proposed in the Budget Workshops, by funding the State Road 50 (FDOT) project upgrade to the six traffic signals (mast arms) at a cost of $447,800, by moving money currently in the contingency fund. Motion carried 5 -0. MOTION TO AMEND TENTATIVE BUDGET: Commissioner Grogan, seconded by Commissioner Wilsen moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes proposed in the Budget Workshops, by funding the State Road 50 (FDOT) project upgrade for the six traffic signals (mast arms) at a cost of $447,800, by moving money currently in the contingency fund. Motion carried 5 -01 Page 4 of 8 Ocoee City Commission Regular Meeting September 11, 2013 MOTION TO AMEND TENTATIVE BUDGET: Commissioner Keller, seconded by Commissioner Johnson moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes proposed in the Budget Workshops, by funding the Cemetery Improvement Project - installation of ornamental fence with brick columns along the front, at a cost of $50,000, by moving money currently in the contingency fund. Motion carried 5 -0. There was discussion with regard to salary increase for the General Fund Employees for the full year vs. mid -year. Finance Manager Brosonski explained that 2% mid -year increase is already in the proposed budget; in order to budget for the full year salary increase it would cost another $109,200. There was discussion regarding how that would impact the contingency fund and the millage rate. MOTION TO AMEND TENTATIVE BUDGET: Commissioner Johnson, seconded by Commissioner Grogan moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes proposed in the Budget Workshops, by funding the salary increase to the general employees at 2% on October 1, 2013 instead of as proposed on April 1, 2014. Motion carried 5 -0. Finance Manager Brosonski noted that the millage rate at this time would be 5.7855 with the changes mad thus far. City Manager Frank added that would be including the State Road 50 improvements and the frill -year salary increase for general employees. This is well below the roll back rate of 5.9037. Mayor Vandergrift added that he would like to add to the previous motion that anyone making over $80,000 would not get the salary increase, but receive the 2% as a one -time bonus. Other members of the commission responded negatively. He added that he would like to see employees making over $80,000 being more involved in the community; and he thinks that they should consider reducing salaries by 10% and giving them an incentive to earn it back if they are involved in the community. Commissioner Keller, Commissioner Wilsen, and Commissioner Grogan expressed disagreement. BREAK: 7:19 — 7:23 p.m. Mayor Vander -rift said he would like staff to take a look at our vehicle purchases, to reduce the amount of vehicles we are buying and concentrate on purchasing hybrids or electric vehicles where appropriate. Public Works Director Krug said we have 5 hybrids now, they are getting about 1.5 times the mileage as a regular vehicle. Page 5 of 8 Ocoee City Commission Regular Meeting September 11, 2013 MOTION TO AMEND TENTATIVE BUDGET: Mayor Vandergrift moved to amend the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes proposed in the Budget Workshops, to have staff revise the vehicle purchase policy to include fewer vehicles and the purchase of hybrids or electric vehicles. Motion died for lack of second. Discussion ensued regarding the amount of time it takes to recoup the money from the higher cost of hybrid vehicles. Mr. Drug noted that it is approximately 10 years. Mayor Vandergrift added that the fuel and maintenance is lower on hybrids. Mayor Vandergrift asked if there were any other amendments to the budgets. He asked the Finance Department to advise the recomputed millage rate. Commissioner Keller asked if they were going to set the millage rate higher, as they have in the past at the tentative budget hearing, by placing excess money in the contingency fund and leaving wiggle room in the budget in case they decide to add something at the final budget hearing. Once adopted tonight, the final millage rate can be reduced at the next meeting, but cannot be increased. Commissioners Wilsen and Johnson said it is their intention to go lower on the millage rate as they advised at the fire assessment hearing, and not go higher. Mayor Vandergrift inquired as to whether or not we could hold off budgeting for the State Road 50 project, instead of placing the entire $447,850 into this year's budget. City Manager Frank and Engineer Wheeler explained that the costs are lower than they would otherwise be because we are piggybacking with FDOT on the project costs, and they will probably want the whole amount up front. FDOT's fiscal year runs from July — June each year. There was discussion regarding how much was left in the contingency fund. Pam said there is an additional $51,130 (.0319 millage) in the contingency fiend over the original $50,000. If that were taken out it would bring the millage rate to 5.7537. Commissioner Wilsen stated there may be other areas of the budget that we can reduce and everyone should take a look at their budget and see if they can come up with anything. She suggested that they consider not giving out grant money this year. Commissioner Johnson said we can consider not doing the fence project at the cemetery and worry more about maintaining the grounds inside. Commissioner Grogan said he does not want to leave extra money in the contingency fiend tonight; he would like to adopt the tentative budget where they are after the amendments and then lower it further at the final budget hearing. NOTE: RECESS (if needed) to recompute the proposed millage rate and rolled -back percentage increase. C. Announcement by Finance Director of the recomputed proposed millage rate and the percent by which the recomputed proposed millage rate exceeds the rolled -back rate. This percentage is the proposed tentative percentage increase in property taxes. Announcement regarding the vote required t o adopt this millage rate (Regular Majority, Super Majority, or Unanimous). Finance Manager Brosonski announced that the millage rate after the amendments made tonight is 5.7855. This around does not exceed the rolled -back rate. 1. Read title of Ordinance regarding millage rate. Page 6 of 8 Ocoee City Commission Regular Meeting September 11, 2013 City Attorney Cookson read the title of the ordinance. He stated that this millage rate will require a simple majority vote. 2. Motion to adopt the tentative millage rate. a. Comments by Citizens- None I b. Comments by Commissioners- N c. Vote on motion to ad opt the tentative millage rate. Commissioner Grogan, seconded by Commissioner Keller, moved that the City Commission adopt a tentative millage rate of 5.7855 mills for the fiscal year beginning October 1, 2013, and ending September 30 2014. Motion carried 5 -0 3. Read title to Ordinance regarding budget. City Attorney Cookson read the title of the ordinance. 4. Motion to adopt the tentative budget. a. Comment by Citizens.- none b. Comments by Commissioners.- none c. Vote on motion to adopt the tentative budget. Commissioner Keller, seconded by Commissioner Grogan moved to adopt the tentative budget of the City of Ocoee distributed along with the budget message of the City Manager dated August 1, 2013, along with the changes resulting from the Budget Workshops, and as amended at the Tentative Budget Public Hearing tonight, such tentative budget being for the fiscal year beginning October 1, 2013, and ending September 30, 2014. Motion carried 5 -0. D. Motion to schedule the public hearing on September 26, 2013, at 6:00 p.m. in the Commission Chambers to adopt the final millage rate and budget. Mayor Vandergrift, seconded by Commissioner Keller, moved that a public hearing to consider the final millage rate and final budget be scheduled for September 26, 2013, at 6:00 p.m. at a Special Meeting of the City of Ocoee City Commission to be held at the Ocoee City Hall Commission Chambers, that the hearing be advertised in accordance with the provisions of Section 200.065, Florida Statutes, and Section C -37 of Article VI of the Ocoee City Charter, that the appropriate Ordinances necessary to adopt the final millage rate and final budget Page 7 of 8 Ocoee City Commission Regular Meeting September 11, 2013 be prepared by the City staff, and that all other action necessary to comply with the requirements of Section 200.065, Florida Statutes, be undertaken. E. Announcement by Mayor Vandergrift of end of hearing and date for final millage and final budget hearing. Mayor Vandergrift announced the end of hearing and date of final budget and final millage rate hearing will be held on September 26, 2013, at 6:00 p.m., at Ocoee City Hall. III. ADJOURNMENT The meeting was adjourned at 7:52 p.m. Attest: t� ' APPROVED: City of Ocoee w S. Scott Vandergrift, Mayor Page 8 of 8